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AMA Statement on House Vote to Eliminate 3 Percent Withholding

For immediate release:
Oct. 27, 2011

The U.S. House of Representatives today passed H.R. 674, legislation which removed the three percent withholding provision that was created under the Tax Increase Prevention and Reconciliation Act of 2005 (TIPRA)

Statement attributable to:
Peter W. Carmel, MD
President, American Medical Association

“The AMA applauds the House for passing legislation that removes the three percent withholding provision. This flawed provision would have required the government to withhold three percent of Medicare physician payments. This additional burden is simply untenable in our current Medicare system. There is already a 20 percent gap between Medicare’s payments to physicians and the cost of providing care to seniors, and physicians now face a nearly 30 percent cut on January 1 due to the broken Medicare physician payment formula.

“The AMA is pleased that the House passed H.R. 674 and repealed the three percent withholding provision, and we urge the Senate to pass this legislation quickly. This is an important way to help stabilize the Medicare system; Congress can take an even more critical step this year by repealing the broken physician payment formula and protecting access to care for Medicare patients.”

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Contact:

Heather Lasher Todd
AMA Media Relations
202-789-7430
Heather.Lasher.Todd@ama-assn.org

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